Newsletters - Past Issues

Money Matters update October 10, 2016

Its is important each of us who are fortunate enough to have food on our table make sure others have food on theirs. Can I ask your support in feeding the homeless and those in need this Thanksgiving?

Consider giving a buck or two and I will match a portion of the funds to the food bank of your choice. 

Here are some photos of what we are doing at the Food Bank of Nevada County

 

Food bank staff and board of directors (Some of us anyway)

From our garden we provide fresh homegrown vegetables- These we grew ourselves!

 

We serve in incredible 12,000 HEALTHY snacks a week to Nevada County Schools beside feeding thousands a month.

The letters we get from kids are both heartbreaking and uplifting. Can you spare a few bucks to help me help the poor? 

Help me help our community.

 

TURKEY MATTERS IS IN FULL SWING

Can I count on you?  Can our hungry count on you?  Let’s do it!

Its time again for our Turkey Matters food drive for the food banks of our counties.

Help me feed the poor with our annual turkey drive where we buy turkeys for the poor. I do this every year and now ask for community support. The program is easy.  Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.

 

Mail:  KVMR FM   120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it! Please consider helping.

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Money Matters airs this Thursday November 3, 2016 at NOON PST 

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Marc's Notes:

With pre- election fireworks not failing to disappoint, as is usual during elections periods, the markets apparently don’t know which way to turn. Having been market neutral to market negative in our portfolios, meaning our stance is one in line with a market going nowhere to perhaps even going down, and being that way for more than three months now, we, like the rest of the world, are wondering where the markets may go once the new president is sworn in.

 

With a Hillary win now looking more likely since the Donald was caught talking locker room to an extent that may have shocked even the staunchest of supporters, prognosticators are forecasting a Hillary shoe in. Of course, the election, like the market, loves fooling most of the people most of the time and calling elections, like calling markets is a fools game even for me.  One can only guess once again as to what president will cause the markets to either rise or fall after all the handles are pulled.

 

With big banks covering both sides of the aisle like they always do by donating to both candidates, the majority of analysts agree a Hillary win means the same ol’  same ol’ for Wall Street. That being the case, a Hillary win would, if the prognosticators are correct, and they often are not, the markets should move higher.

 

With the wild card being the Donald and no one knowing exactly just what it is he would do, the general impression is if the Don is elected, Wall Street might run for cover due to the uncertainty. Although Donald is definitely a one percenter and understands corporate America a hundred times better then Hillary, we still don’t know how predictable this unpredictable man will be if sworn in.

 

Don’t bet on any of this however as markets rarely do what the majority expect them to. The markets could react in an exact opposite direction then expected when one of these folks take to the oval office, and no matter which way it goes, neither direction will surprise at least this analyst.

 

I have learned a long time ago: no one knows anything for certain about the market. She is a fickle beast, looking to tear you a new you know what at any time. The market can break the smartest investor or make the dumbest lucky son of a b**** an overnight millionaire. The trick to riding it however, is too strap yourself on tight, hold on and prepare to be thrown off at any time. You can accomplish this by not committing too much money in any one direction, in any one industry or on any one outcome.

 

We will know what the markets think of our new president in due time, and it likely won’t exactly pan out like anyone expects. That’s the thing about markets: They are impossible to predict. 

 

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With the holidays approaching, thoughts turn to family and friends. For me thoughts also turn to calories as in the consumption of them. I try and limit my intake as I am an old man now but still have young kids. I started late and so am trying to stay alive to see them go to college, marry and give me some grandkids. (Ouch that sounds bad).

 

Anyway, at the young age of 60, I try and work out once a day, limit my bad food intake and take things into my body to hopefully make my mind stay sharp. I read a lot about investing on all things money but also read about investing in my vessel that houses my brain which is of course by body. Many an old person has told me the brain may stay sharp but the body gives out. For that reason, I am trying to stay ahead of the game.

Besides the obvious benefits from working out with aerobic movement (circulatory benefits) and weight bearing exercises (skeletal benefits and body shape improvement) I also take a variety of supplements and foods that may (or may not) allow me to live a fuller life and keep moving through the duration of it.

People always say to envision and set goals in one’s life yet I have found no one that has set an AGE GOAL. If setting goals and visualizing things is generally agreed upon as to actually improve one’s odds at achieving those goals, I ask: why NOT set an age goal?

Just because no one does it and no one can really determine exactly what day one will meet his maker, I figure if none of the unexpected early life terminators (accident, cancer or other) puts me down prior to my succumbing of old age, why not set an age goal just for the hell of it?

Like I said, if setting goals and envisioning things is actually generally accepted as good practice, why not set an age goal right?

So a few years back I set a goal of living to be 128. Yes, that’s a bit long and would set a verifiable old age record if I actually make it, I aim to shoot high and why not.

Like a business negotiation where one always starts high on price and negotiates downward (seller of goods) or the buyer who starts LOW and works UP, I figured 128 was a good starting point.  Go big or go home right?

My 91 year old tells me once I get to 90 or so I won’t want to live any longer due to the pain I will experience just moving around but I still notice he doesn’t jump off a bridge to end his life. He still wants to live.

And yes I do notice some old people who can’t walk, can’t sit comfortably, are grossly overweight or have other infirmities, afflictions that may very well affect me in due time but I don’t give up easily in anything and just because most people tell me these things are a certainty, like many things I am told in my life, I say hogwash.

Don’t tell me I can’t do something because if I think I can and I want to do it, I will tell you to go jump in the proverbial lake.

To attain a goal, one first has to believe it is attainable. Call me crazy (and many have over my life) but I firmly believe I can make it to 128. I am not saying the odds are in my favor of course, in fact the odds are grossly stacked against me, but like playing an opponent on a hot field on a hot day, my response is yes it may be hot, but it’s hot on BOTH sides of the court. The harder it gets, the more determined I get.

In other words, as was said in the movie Star Wars “Never tell me the odds”.

 

In the same series, it was also said by Luke in the second Star Wars movie “I don’t believe it” of which the response from Yoda was “that is why you fail”.

I am pretty much convinced you won’t live to 128, nor 118, 110 or even 100 if you don’t believe you will. If you make up your mind to fail in anything, you most likely will.

So I try not to go into anything thinking I will fail. I MAY fail (everyone does every so often) but I don’t start out with that belief nor do I catch myself believing I will fail anytime during the process.

Positive thinking wont insure you will succeed of course, and just being positive won’t make a bad plan succeed. But a good plan needs the best opportunity to succeed and that starts with doing your homework, then be willing to do the work all the while believing you will succeed.

So to get to 128 I read a lot about health. I mean a lot! I eat stuff that tastes like crap and although I don’t like things that taste like crap, I eat them (ever try Noni Juice?)

In the morning (every morning except when traveling) I take blueberry juice (rats live a lot longer fed blueberries so I read), Noni juice (this stuff is GOD AWFUL), grapefruit juice with nutritional yeast (also tastes like crap but not as bad as Noni juice), two tablespoons of raw olive oil (see the movie Lorenzo’s oil), prune juice (has tons of iron and is good for digestion), green tea (three or more cups a week helps prevent various cancers),ephedra tea (opens up lungs and stimulates circulation) and then a small bit of protein in the form of a lean meat or egg.

After that I take about 30 supplements (yes I might be wasting my money but who really knows right?).

Throughout the day I love turkey with homegrown lettuce, protein shakes ( I work out a lot so I need lots of protein), more juice, and all sorts of healthy stuff. I stay away from burgers and fries, shakes and packaged stuff but don’t get me wrong. I can polish off a box of Sees’ candy, smoke a cigarette on occasion, quaff down two or three martinis or wines and eat salami and pie with the best of them. I LOVE ice cream and other sinful foods and will eat them if I feel like it.

I don’t believe in denying myself the finer things in life because if I do why the heck would I want to live to 128 right?

The point is I have vices and bad habits but it’s not what you do once in a while that makes or breaks you, it’s what you do on a daily basis that counts. What I do daily may not be the best in the entire planet of health food nuts but what I do works for me.

Who knows, tomorrow I may get cancer, die in a car wreck or have a stroke and it that happens so be it. At least I tried. But right now I am in the best shape of my life (barring my young twenties of course). My hair is thinner and my knees and back are always sore but my body weight and shape I see in the mirror pleases me to no end.

I am still fairly sharp and can argue (or debate) with the best of them. I work hard and can multi task no problem. I try and control my temper, relax and meditate, work out and do the best I can for my clients and customers by studying constantly, always asking what if and why and always question my decisions one last time to cover the possibility  “what if I’m wrong here”.

I may not make it to 128 but don’t tell me that and don’t let anyone tell YOU that something can’t be done if you know it can be. Just don’t forget to do your homework then be willing to do the work. Then believe it CAN be done during the whole process.

 

Do all those three things and that will give you the best chance at actually doing whatever it is you want to do and I’ll see you in year 2083 (maybe).

 

Jambo!

 

Marc

 


 

Money Matters update-October 18, 2016 PLEASE READ

Its is important each of us who are fortunate enough to have food on our table make sure others have food on theirs. Can I ask your support in feeding the homeless and those in need this Thanksgiving?

Consider giving a buck or two and I will match a portion of the funds to the food bank of your choice

Here are some photos of what we are doing at the Food Bank of Nevada County

 

Food bank staff and board of directors (Some of us anyway)

From our garden we provide fresh homegrown vegetables - These we grew ourselves!

We serve an incredible 12,000 HEALTHY snacks a week to Nevada County Schools beside feeding thousands a month with complete meals

Help me help our community

----------------------------------------------------------

TURKEY MATTERS IN FULL SWING

Can I count on you?  Can our hungry count on you?  Let’s do it!

Its time again for our Turkey Matters food drive for the food banks of our counties.

Help me feed the poor with our annual turkey drive where we buy turkeys for the poor. I do this every year and now ask for community support. The program is easy.  Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.

Mail:  KVMR FM   120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it! Please consider helping.

----------------------------------------

Money Matters airs this Thursday October 20, 2016 at NOON PST

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Diatribe   Fall 2016

Years ago a nation repressed. Over taxation by the monarchs, too much in your face meddling by the so called rulers and just basically having had enough, a group decided to flee their homeland in search of a new one.  

Across the treacherous Pacific they came, here to America. Boat after boat arrived, not without peril of course. Some drowned, others eaten by natives because they landed somewhere else I suppose. Disease took some more and those that did arrive had to survive harsh winters, unknown perils and hostile inhabitants in some cases. But came they did, traversing farther west, until the whole nation was conquered, or inhabited as some might say.

They established new rules, even fought off the rulers from their old stomping grounds as they tried an across the ocean tax grab. Since no army can really inhabit another’s land for long, the ruler in Britain gave up and said the hell with ‘em.

So the newly found nation penned its Constitution and Articles and set off to live a life on based on the concept of liberty. Some say Democracy but that has its flaws.

Preposterous some say, how could Democracy be flawed? After all what is better than the will of majority?  Well, it can also be called mob rule right? If my mob has more people than your mob, we rule. That’s called strength in numbers and that is the epitome of democracy- the great numbers get their way

But Democracy flawed?   Maybe. Think of two wolves and lamb, deciding what to have for dinner.

The majority of course, the two wolves, would have lamb chops for dinner under the rule of democracy, after all they will win the vote. But the poor lamb, being a minority, will forfeit his liberty and life to satisfy the mob, aka the democratic decision.

Ah,  but others might say liberty is where the vote is taken but the lamb in this case is well armed and has the means to defend itself from the ruling mob, in this case the two wolves.

The lamb’s liberty and therefore his rights are now defended by his right to bear arms you could say. That it is his right and it works out pretty well for the lamb. The wolves will have to consider another alternative and one that doesn’t trample another ones rights

We can conclude that Democracy might not work for you so well if it’s your rights, and your liberties being violated by the majority.

Liberty then could be thought of as, you have the right to do what you want, as long as it doesn’t infringe on the rights of another. Now that sounds like a better deal. The wolves have the right to WANT to eat the lamb, but if the lamb objects, his rights would be infringed upon because basically he would die. Not so good. So the wolves, under liberty, cannot exercise their right to a lamb stew despite having the majority as that would infringe on the lambs right to life.

   

Lamb insuring his rights are not trampled by the Mob

One could draw it out a bit further and say, you have the right to want to help out someone, but you don’t have the right to force another to do so, even if it might appear to be the right thing to do. The same could be said for taxes. You have the right to vote on a tax you would pay, but you don’t have the right to vote on a tax another would pay, especially if you won’t pay it yourself.

Want a tax to help the homeless? Go ahead and pay it, it’s your right, but you can’t force another to pay it, THAT infringes on his right to keep his money.

In any case, you can bet it wasn’t the lamb who said give me democracy or give me death, in fact nobody said that. But there was a wise man who insisted “give me liberty or give me death”.

There is a big difference between Democracy and Liberty. They are not the same, just ask the lamb. One tramples rights in the long run, the other insures them forever.

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Is this what we now call a thriving economy? Accumulating astronomical amounts of debt to fund some sort of so called "growth"?

 

So the nation thrived for the first few hundred years, some could argue by stripping the land of its resources, like locusts.  Others would argue they thrived by doing what men do-evolving, working, inventing, innovating and growing in numbers. Yes, we always seem to grow in numbers.

In the early years, those ruling this country kept true to the founding fathers ideals which was exercising liberty and keeping the ruling class under wraps.

We don’t want a repeat of the Britain monarchy, the initial reason those so long ago fled here under extreme hardship and sacrifice.

Not all societies in the world are democratic of course, nor do few practice real liberty.

Man’s propensity to want power sees to that. Get more power. After all give a man power and all he wants is more of it.

People like to meddle, especially in others peoples business, thinking they know best what’s good for the world.

Once upon a time, a man, a rather evil man, who didn’t believe in either democracy or liberty said, quite intelligently and with incredible foresight and understanding of the human condition- “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. ... until politicians realize they can bribe the people with their own money

Simple yet never truer, these words hold the key to movement and change in the human condition and not a change for the better. The founders left Britain because of this simple fact and established rules to prevent it from happening, yet the nation was well on its way to becoming again like Britain. The do-gooders, world improvers and the meddlers slowly worked their way into the fabric of government in the new land, well not so new now of course, we have been around for 200 plus years.

A founding father knew this tendency of man to ruin the best laid plans of man when uttering shortly after being asked “what have we got sir a republic or a monarchy?  He replied- “A republic, if you can keep it.”

Keep it indeed. As this nation progressed through the 1700’s and 1800’s, progressed we did. The most prosperous time ever for this country most would say. Even the start of the 1900’s were pretty damn good, with the invention of the assembly line and other innovations. Truly the United States ruled the planet in progress and freedom.

Ah but those naysayers again, you’re raping the countryside, walking on human rights, with some men getting rich, and that is not fair. Everyone should be equal. Well, that’s not quite what was said. What was said was that all men were BORN equal, but didn’t necessarily end up that way.

So the meddlers had to do something about it again. Insisting they make rules that others have to follow.

Now think back to our liberty discussion. Remember, The meddlers do have the right to think what they want, and act on what they want to act on, yet under the rule of liberty have no cause to make others act.

True, some may be infringing on the rights of others, but it is infringing, that is the issue. We don’t infringe on others because they are infringing on us. That just makes the problem worse. What we do is stop the original infringement, not make more of them.

In any case, democracy took hold in the US over liberty somewhere in the early 1900’s replacing the idea of liberty ever so slowly. The meddlers saw things they wanted to change by forcing their ideas down the gullets of others. They viewed the world through their utopian glasses where everyone gets a new car, a new home and chicken in every pot, or something like that. Now its “everyone deserves a cell phone”.  My, how times change.

Never mind who works and who doesn’t. Those not working must WANT TO WORK right? No, not everyone. Some don’t want to work, and some just don’t want to work as hard as another. Its human nature, not inequality.

But the original need to work stemmed from hunger. If thou shall not work, thou shall not eat. The law of nature, not of man.

Nature knew something simple. Nothing motivates like hunger. Some don’t want to work, but give them an empty stomach and they WILL WANT TO WORK, trust me on this one.

But ah, those people with better ideas than me, decide on things like, lets tax them and everybody will vote on the tax, although only a few (think the lamb) will actually pay the tax.

It’s easy to pass a tax especially if you won’t pay it, that the most painless tax of all, just ask the mob. They will gladly vote on a tax they don’t have to pay. That’s democracy for you. Tt works out very well except if you are an unarmed lamb.

Remember, liberty is the right to pay your money to help someone if you want but you can’t force another to do so.

Liberty doesn’t sound so good anymore does it?

Especially if you are a meddler.

Well, it actually does still sound good to me, but your world improving DNA is showing there Agnus.

Yes, let’s make someone ELSE pay their fair share because WE think and know what’s fair don’t we?

After all, two million a year is too much. It’s not fair.

And who decides what another man needs? Not that other man of course. That’s too simplistic.

Let the mob decide what’s fair. It’s better for the wolves that way, never mind the lamb. There aren’t many of those anyway.

Uh,  that ain’t liberty missy, that’s mob rule, and that didn’t work out so well for six million Jews a few decades ago.

So let’s do an exercise and vote on the issue, shall we?

How many think that group over THERE should pay more tax?

Most of you?  Yep thought so

Well there you have it then, its lamb for dinner.

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So with more people on food stamps then ever and more poor people than ever and more money being spent of food stamps then ever and more money being spent on poor people than ever, why do we have so many people on food stamps than ever before and more poor people than ever before?

Well, you could argue pay a man to stay home and he will stay home. That what welfare does.  Pay a woman to have children and some will have children?  Maybe.

Have a lot of people vote on taxes they won’t pay themselves and you will have a lot of taxes, and that’s what we have, a lot of taxes. Have a lot of taxes and some people will go broke, end up poor and needing welfare and assistance, and that’s what we have, more poor people, more people on welfare and more people needing assistance.

Tax people who make more and they will make less to avoid the taxes. And that’s what we have, more people working less.

Our tax base says the more you make, the more taxes you pay. So I will make less and work less. How is that for incentive?

If I make more you will take more so I won’t work more. And that’s what we have right?

Less people working, more assistance programs, more people needing assistance and more people asking for assistance. The models call for it, the results prove it, yet few see it.

Oh yes, we do have another main cause which is the Federal Reserve printing up money and causing inflation which drives more people into the poor house but that is a story for another day now isn’t it.

So once again class. Having a tax structure that punishes you for working more and making more money and rewards you for working less and making less. Yes, no one would argue that is how the tax `system` works in today’s world because it does.

How about doing the opposite? How about a graduated tax that gives people incentive to work more rather than work less?

The more you make the LESS you pay.  Yea yea, we cap it somehow and tweak the fine printt, but the incentive is geared in the RIGHT direction.

Cut more lawns, you pay less tax. Flip more burgers you pay less tax.

On the flip side, do you want to stay home and not work much? You pay through the teeth and go hungry. More reason to get off your butt and get a job, any job.

Want to work a few extra hours to contribute to your great economy? GREAT, you pay less tax.

Take a second job to make more, you pay even less. Now that’s a plan I could get behind? While they run me out of town that is.

It’s a basic Pavlovian response tax plan however. So simple and logical it boggles the mind who fail to see its benefits.

WORK MORE PAY LESS.  So people would WORK MORE. Its’s that simple folks, it’s that simple.

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So now we choose between a reality star accused of molesting woman and the power crazed wife of an ex-president supposedly accused of murder (think Vince Foster folks)

Yea yea,  no proof I know, but come on, anyone out there think Hillary or the Don are saints here?

Shall vote on it?  Well yes, we eventually will.

After all what’s so bad about murder and womanizing.  Presidents have done both since the beginning. Look at JFK and his philandering. How about FDR, Thomas Jefferson, Lyndon Johnson, Dwight Eisenhower, the list goes on.

Talking about presidential flings, did you know Vincent Foster's connection to the Clinton's was primarily via Hillary, rather than Bill. Vincent and Hillary had been partners together at the Rose Law firm, and allegations of an ongoing affair had persisted from the Little Rock days to the White House itself. Was Hillary involved with Vince? So say the rumors but they are just rumors of course!

Killed to bury an affair? Or killed because of a shady land transaction. Both pretty lurid and definitely illegal if forced death was a factor eh folks? Especially if the rumors are true and Hillary had a hand in it, or pulled the trigger herself. No proof of course. People see to things of that sort when the things are big enough.

And how about not so direct murder?

What do you call a drone? 

Mass bombing?

Condoned assassinations?

C’mon folks, all in a day’s work in the oval office so why act so aghast!
What’s sad is we act like it’s a transgression when it happens then forgive and forget after a while.

Such is the forgiveness and memory of the electorate. Think the Nixon pardon, the banksters with no jail time, Clinton’s perjury and Bushes so called weapons of mass destruction hidden in Iraq. We forgive and forget, but not in four weeks’ time. Don’t try this at home though. Only the elite get free get out jail cards. The average Joe gets no such gratuity.

Trump's problem is the news just came out and not enough time has passed. Hillary’s good fortune is that many voting for her weren’t even out of diapers when Vince Foster committed suicide somehow with his arms neatly folded, so I read somewhere.

Hell, we even pardoned perjury from Hillary’s husband as well as his defaming the oval office with his hot august night fiascos. Is it possible he did it on the oval rug on the presidential seal so often seen in the oval office photos?

Yech… Too much information for sure.

So a reality TV star billionaire versus an “over one hundred millionaire”, power mad, political lifer, this is what we’ve come to. No wonder some people don’t vote.

Well no matter who you do vote for, the adage “you get the government you deserve” comes to mind. You will, trust me on this one too.

I, an overfed short-haired leaping gnome, college educated and life skilled in many things (woodworking not one of them) I predict, and likely rather accurately if I get lucky, that at the end of four more years, there will be no improvement in welfare, food stamps, the poor, the super-rich and the mega banks.

The names and titles of those blamed for our ills may change but the blame finger (that’s not the middle one by the way but the index one) will still be pointed away from the person pointing it, the one sitting in oval office.

After all, it is always somebody else’s fault now right?

Certainly seems that way where Presidents are involved.

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Can anyone tell the future in markets?

 

Where the markets go after the election we do not know.

Common belief is a Hillary win would be same old, same old for the banks and Wall Street. More money printing encouragement from her to juice the economy and pay for her lavish spending plans will jerk the stock market out of its funk and scream it higher so say some.

Others say Hillary will doom us to higher inflation through the very same spending and allow the banks through her ignorance to bring us to the brink of another world disaster which will crash everything money. No one knows for sure.

On the other hand a Donald victory is the utmost in uncertainty. Trumps knows more in his pinky about Wall Street then Hillary could ever hope to know in her lifetime but Trump is vague in his plans. What he says he will do is not everything he wants to do and public spending may be both so he will likely be right behind Hillary with the national credit card a blazing. Wall Street might like a fellow billionaire in control but they too know not what this wild card will do. It scares many just what he might do.  Nuff said…..

Will Trump build more weapons? Not that he could out do the current administration in military spending but it is I suppose possible. Will he use one? Who knows? I don’t think Trump himself knows until the moment arrives, if it ever does.

Will Trump build a wall so the price at Taco Bell goes up? Or will my Ford Fiesta cost more not being able to jump a 30 foot wall? Will Putin go head to head with the Donald?

Will he actually jail Hillary? A million questions of which I have no concrete answers.

Who knows and that is the point. No one knows. We will just have to see what the markets do when whoever gets in there gets in there. Jack be nimble and jack be quick. Stay awake ladies and gentlemen.

My advice?

Consult a qualified financial professional for your investing needs and remember, no one can predict market movements anytime, anywhere. They are that difficult to discern. Keep up with your duck and cover drills and pray a lot. God might have to take care of us on this one.

This nor any part of Money Matters is a recommendation to buy, sell or hold any securities and should absolutely not be construed as investment advice nor any indication that I have any idea what I am talking about.

All for now,

Marc

 


 

Money Update October 4, 2016

Marc's Notes:

Kyle after working hard AND smart. 13 big ones= $1,300.00. That is a lot of money for anyone let alone a 16 year old kid. This job took him about 20 hours worth of labor and its all profit! When is the last time you held this amount of cold hard cash?

It’s all good. I love people. I love interacting. I love working and I love what I do. I strive to do the best job I can for my clients, my family, my friends and people who need help.  I love helping people and I love doing something different every day and hanging with someone different every day. I am far from perfect but I know what works for me. What works for you? Don't know? Figure it out. Stop, look, listen, evaluate, plan, do.

What floats my boat?  Working hard, studying hard, moving forward, staying healthy, playing a bit, making a few waves and riding a few. Make people laugh (a lot!) and help someone every day. I know it’s not all about me nor is it all about you. I also know if it feels right it may or may not be. I don’t mind being bored every once in a while as it means I am comfortable with the only person in the room at the moment and that’s me. I stir the pot on occasion because if someone like me doesn’t do it, a bunch of crap settles to the bottom.

Thanks to everyone for being there, for being you and for contributing to the big round ball we live on and the people on it.

Now like NIKE says, just go do it.

Jambo!

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TURKEY MATTERS IN FULL SWING

Can I count on you?  Can our hungry count on you?  Let’s do it!

Its time again for our Turkey Matters food drive for the food banks of our counties.

Help me feed the poor with our annual turkey drive where we buy turkeys for the poor. I do this every year and now ask for community support. The program is easy.  Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.

Mail:  KVMR FM   120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it.Turkey Matters is now in full gobble gear so ladies and gentlemen, start your envelopes!

 

Money Matters airs this Thursday October 6, 2016 at NOON PST.

Tune in.

 

Need investment advice or guidance? Email me at mcuniberti@cambridgesecure.com

We can set up a no cost, no obligation free review of your investments.

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Will we once again see a big bank implode?

The Trouble at Deutsche.

The German banking conglomerate Deutsche has seen better days. Its stock cut in thirds in the last 2 years, investors have hammered the shares under swirling rumors and concerns about its financial health and long term viability.

This bank is no small potatoes. It has more than 100,000 employees in over 70 countries, and has a large presence in Europe, the Americas, Asia-Pacific and the emerging markets. In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of 21 percent.

The trouble started during the banking blow up and housing crash says Wikipedia.

Deutsche Bank was one of the major drivers of the collateralized debt obligation (CDO) market during the housing credit bubble from 2004 to 2008, creating ~$32,000,000,000 worth. The 2011 US Senate Permanent Select Committee on Investigations report on Wall Street and the Financial Crisis analyzed Deutsche Bank as a 'case study' of investment banking involvement in the mortgage bubble. Then when the majority of large banks were retrenching and shoring up capital, Deutsche bet the markets would loosen and increased its leverage. The bet apparently failed as markets remained anemic and bank regulations tightened.

Just because it’s a German bank however, don’t think your tax payer dollars weren’t used to shore up Deutsche. In 2008 Deutsche Bank reported its first annual loss in five decade and received somewhere in the neighborhood of US$11.8 billion from funds provided by US taxpayers when they bailed out AIG, the American insurance company it had dealings with.

Fast forward 7 years later and Deutsche is still in trouble and it appears to be getting worse. Its troubles are not its own however.

With a reported 70 trillion in derivatives on its books (large unregulated bets of which the content and trigger points are known only to Deutsche), it’s collapse, if it indeed happens, would have much greater impact on financial markets then the Lehman Brothers fiasco that many argue was the first domino in the banking blowup that almost melted global financial markets in 2008/09. Jim Willie in his Silver Doctors September 17 essay said:

 “The important thing to keep in mind about Deutsche Bank is that it won’t go down alone if it goes down at all.  If it fails, it will take along with it 3,4,5,6 or 10, or 15 other banks with it”. 

The Street.com added to the specter of a Deutsche failure when it wrote on August 25:  “The 2008-2009 global financial crisis, is nothing compared to what would happen if Deutsche Bank, a keystone of the global financial system, collapsed”.

Is a failure of this magnitude plausible?

It’s hard to imagine, given the recent history of central bank intervention when it comes to “too big to fail” bailouts that the global monetary authorities would let Deutsche go under given the possible ramifications of such a failure.

My money is on another bailout should Deutsche be forced to ask for a life preserver. The ironic part here is that this bank, the people who run it and the authorities that regulate it apparently didn’t learn much from the 2008/09 crisis that occurred just a few years ago.

Once again the taxpayers of the world will likely pay the price resulting from the actions of others who were looking to line their pockets with obscene amounts of dough.


 

 

 

 


 

Money Matters update September 28, 2016

 

   

DECK COATING AND PAINTING BY KYLE.  Check out the flyer above!

 

Halloween Market Goblins

Jambo and good day!

Money Matters airs Thursday October 6th, noon PST on KVMR FM and worldwide on KVMR.ORG and MONEYMANAGEMENTRADIO.COM.  “Halloween Markets and what to expect”.

Yesterday was my first article in the Auburn Journal. From now on look for me bi-monthly.  Also look for Money Matters articles in Auburn, Rocklin, Lincoln, Roseville and beyond soon. The option to appear in more of their papers is open. I look forward to spreading the message even further. If anyone finds a Money Matters article in a paper down the hill besides the Union, Territorial or Auburn Journal, let me know. I will send you a free T shirt!

As a result of a trip I took so Southern California in the spring, a Los Angeles station and I have reached a tentative agreement to air Money Matters in that area. Moving along nicely.

Another financial service should be available soon from my office in Auburn. I am in the midst of establishing a new certification. Stay tuned for more on that in the weeks to come. 

Wish to meet and discuss your portfolio? Email me for a no cost- no obligation one on one sit down. mcuniberti@cambridgesecure.com

 

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TURKEY MATTERS IN FULL SWING

Can I count on you? Can our hungry count on you? Let’s do it!

 

Its time again for our Turkey Matters food drive for the food banks of our counties.

Help me feed the poor with our annual turkey drive where we buy turkeys for the poor. I do this every year and now ask for community support. The program is easy.  Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.

Mail:  KVMR FM   120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it.Turkey Matters is now in full gobble gear so ladies and gentlemen, start your envelopes!

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Reliance

Do you rely on something or someone?

All things interact with all things in some way or another. But just how dependent in degree is subject to will, desire, necessity, symbiosis, nature herself and other factors. Knowing the things we cannot change is one element of successful outcomes in one’s personal and business life. Outcome dependency can be more mechanical when it comes to things like keeping a roof in good repair to stay dry, not smoking to stay healthier and not driving too fast to stay alive. But other dependencies are not so easy to identify, and even when identified, not so easy to alter.

There are healthy and unhealthy dependencies, good and bad outcomes, many of which happen by the personal choices we make”

There are healthy and unhealthy dependencies, good and bad outcomes, many of which happen by the personal choices we make. Even in investing, our outcome may or may not be in direct correlation with the decisions we made. If an unexpected news item is negative, the price of a stock may be hit with no fault on the part of the investor. It was a previously unexpected news item. However if we failed to look at the books of a company we bought stock in and the company eventually fails due to those books, that was an outcome we SHOULD have seen.

In a general attempt to improve your situation whether in business or in life, identify the outcomes you have control over and the ones you do not.

Are your prejudices getting in the way? Preconceived notions or just plain stubbornness? Are you dependent on people or things you should not be? Is there too much dependency? Can you switch a dependency from one thing or person to another to improve the odds of a successful outcome?

“Remember, you came into this world alone and alone you shall go out of it”

Remember, you came into this world alone and alone you shall go out of it. What that means is your interaction with the world is just that, your interaction with it, but it is your sole interaction with it the point being made here.

You are an individual and will always be solely alone on the most basic of levels. Realize you can only enhance the world and the people in it. You cannot become one with it. You cannot merge with it. You only interact with it. This realization puts in perspective what you value, who you value and the true nature of what it is you are doing and what it is you are trying to accomplish.

How you interact with people or the world around you should always be regarded as YOU interacting with THEM and not a merging of the two. Two people cannot merge into one just as two physical things cannot merge into one. An outcome desired is not an outcome that may happen just because you will it. Dependency on external forces and other things will always effect what happens because of cause and effect, because of dependency.

To better comprehend what happens to you as you interact with the world around you, be aware of your dependencies. In other words, who are you dependent on and are you too dependent. What are you dependent on and is that the wisest of choices. What shouldn’t you be dependent on and what makes no difference.

And above all, are the things and people you are dependent on right now the best of choices. It is never possible to enhance one’s dependencies to perfection but knowing what you can and cannot change and just how outside people and things effect what happens to you starts with a subjective look inside and seeing what and who is really around you.

Life, as in business, is a constant reevaluation and altering of paths as you go, not just a stumbling forward.

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Last week’s long awaited meeting of the Federal Reserve yielded what the majority of economists expected. No increase in the federal funds rate yet again. The last increase, in fact the only increase since 2006, took place in December of 2015 which may have sparked the massive sell off in equity markets in January 2016.

Many theorized that with the upcoming election the Fed would not increase the rate during last week so not spark a market sell off right before the election. Fed Chief Janet Yellen is a Democrat and although politics are not supposed to play a part in monetary policy from the Fed, one could draw another conclusion.

No matter what the conspiracy buffs may think about the Feds playing political football, the Fed statement allayed that suspicion by saying:

“Near-term risks to the economic outlook appear roughly balanced. The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives. Our decision does not reflect a lack of confidence in the economy”.

In plain English one could decipher the Fed speak as “things look to be getting better but we are still being cautious”.

Of the members voting, three members dissented and voted for an increase. This was the largest split vote in years.

For an indication of future direction in the rates, experts also reviewed the so called “dot plot”, which is published after each Fed meeting. This graph shows the projections of the 16 members (some of which do not vote at each meeting) of the Federal Open Market Committee as to where interest rates may be in the future. Market participants look at this graph to arrive at some sort of opinion as to what the Feds may do at subsequent upcoming policy meetings.

Currently, the members' average expectation is for rates to hit 1.27% at the end of 2015, 2.68% in 2016, 3.54% in 2017, and 3.79% in the long run. The current target for the fed funds rate is 0 - 0.25% which is a long ways from the dot plot viewed after last week’s meeting. 

Keep in mind the Fed is data dependent and they can and have changed their view repeatedly as economic measurements trickle in.

No matter what the Feds do at their next rate setting meeting in December, fixed income investors and retirees living on savings no doubt were not thrilled with no increase yet again. If the Feds decide to start a consistent pattern of rate increases in accordance with the dot plot, investors counting on interest income to pay their bills could finally start to see some hope in an otherwise dismal environment.

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Bonds are IOU’s. You loan someone their money and in return you get the IOU (the bond).

They have infinite possibilities as to the terms which states what you get back, when you get it back, what collateral (if any) you may have, any interest rate you may get and just about anything else one might see fit to include. The most common bonds are issued by sovereign governments, states, municipalities and corporations. They can be insured or otherwise.

Unlike stocks, bonds are what I call linear investments.

Where stocks can rise or fall as they have no “face” value and investors can lose money based on that movement, bonds have a definite face value.

A $100 bond always states $100 as its face value. If an investor sells a bond before its maturity date (the date it is paid), the actual price one can sell it for can rise or fall. If an investor keeps the bond until it matures, the face value is what is paid. A $100 bond will pay $100. Any interest one might make (known as it coupon rate) can be paid throughout the bonds life (like yearly or otherwise) or it can be paid all at once when the bond is paid.

I call them linear investments because the face value of the bond remains the same, and if the bond is held to maturity, this value does not change unlike a stock price which can change daily. Stocks have no face value printed on them unlike a bond which does.

The end result from owning a bond is you either get paid or you don’t which is why I call them linear. Its value is a straight line. $100 in equals $100 out assuming you get paid of course. An issuer of a bond that can’t pay is said to be in default and the investor can lose his money. The reason for default would likely be lack of funds. They borrower simply does not have the money to pay. If the bond goes into default, many things can happen, most of them bad.

The issuer can offer to renegotiate the bond and partially pay what it owes whereby the investor gets only some of his money back or the bond can be rolled over which means the maturity date is redrawn to a later date by issuing a new bond with a new maturity date and perhaps new terms and conditions. A flat out total default means the investor gets nothing. If the bond is insured the insurer would be on the hook for the payment. If not, the investor might seek relief by way of the judicial `system` or wait in line if the borrow declares bankruptcy which on a defaulted issuer is highly likely if it can’t renegotiate with its bond holders.

Bonds are commonly referred to as fixed income investments which means their yield can be somewhat predictable unless the bond terms are broken by the issuer. Bonds can be a way to diversify a portfolio and provide a source of predictable income.

As in most investments bonds have inherent risks. Investors should read the prospectus and financial sheets of the issuing entity, understand completely the terms and conditions of any debt instruments they are considering and consult an investment professional before investing.

 


 

Money Matters update September 14, 2016 PLEASE READ

 

Marc's notes:

Jambo and hello again from money central!

Well the weeks of complacency in the markets seem to have ended. The Dow is bouncing like a proverbial ball, up one day and down the next. At least the summer doldrums have ended. Whether that is a good thing or not remains to be seen. With renewed volatility the markets will likely reveal their plans for a new direction, whether up or down. As a side note on volatility: for the first time on record, the iPath S&P 500 VIX Short-Term Futures ETN recorded more volume on Tuesday than any company in the S&P 500 Index, with a record 110 million shares changing hands.

This is a measure of volatility and some regard it as the fear index. (Figures from Bloomberg). A new level of activity may be upon us.

We will see. Heavier cash positions will reduce volatility in accounts as cash neither gains nor loses nominal (face) value. We continue to watch the markets and the events that affect them  and will communicate that to you in Money Matters newsletters, shows, newscasts and articles.

 

Money Matters airs tomorrow Thursday Sept 15, 2016 noon PST on KVMR. Listen to it on the web at KVMR.ORG or moneymanagementradio.com.

 

Look for Money Matters articles in Auburn, Rocklin, Lincoln, Roseville and beyond. Gold Country Media has selected yours truly as a financial columnist for one of their seven newspapers in the valley and my articles start next week. The option to appear in more of their papers is open. I look forward to spreading the message even further.

As a result of a trip I took to Southern California in the spring, a Los Angeles station and I have reached a tentative agreement to air Money Matters in that area. Moving along nicely.

Another financial service should be available soon from my office in Auburn. I am in the midst of establishing a new certification. Stay tuned for more on that in the weeks to come. 

Wish to meet and discuss your portfolio? Email me for a no cost- no obligation one on one sit down. mcuniberti@cambridgesecure.com

 

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Its time again for our Turkey Matters food drive for the food banks of our counties.

Help me feed the poor with our annual turkey drive where we buy turkeys for the poor.

I do this every year and now ask for community support. The program is easy.  Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.

Mail:  KVMR FM   120 Bridge Street, Nevada City, Ca 95959.

Attention Turkey Matters.

 

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it.

Turkey Matters is now in full gobble gear so ladies and gentlemen, start your envelopes!

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Autonomy: independence or freedom, as of the will or one's actions.

 

All things are autonomous to one degree or another. Markets, events, people and any other thing or event.

Does on event cause another?

Sometimes.

Does one thing affect another? Sometimes.

Do people operate separately or together? They do both.

Not enough autonomy merges one event to another, merges one person to another or in the existence of a tangible object, go hand in hand in that existence. I tore out some grass and failed to replace it. Weeds grew. The blank spot of grass gave the weed opportunity. Did the digging cause the weeds? Did one event cause the other? One could look at it a variety of ways. 

If one asset class falls, does it drag another with it?

If a world event takes place, does it cause something else to happen?

All things operate in some degree of dependence, symbiosis and autonomy.

How much effect one object, person or event has on another is either desired or not, to some degree or another.

The point being made is that one action causing another can be an avoidable event or unavoidable event. It’s the undesirable reactions and outcomes we strive to avoid if possible. We do this by our actions which take rise from our decisions.

No one always makes the right decision and no one person always selects incorrectly but the way to constantly improve is to learn from the incorrect decisions. After all the definition of insanity is trying the same thing over and over again even if the result is always the same.

Sometimes it easy to see a bad decision and sometimes it veils itself in prejudice, timing (takes too long in order to make a correlation) or the inability or unwillingness to change. In any of these cases, the outcome will be a negative one once again. The serenity prayer addresses this human challenge most poignantly:

 

God, grant me the serenity to accept the things I cannot change,

Courage to change the things I can,

And wisdom to know the difference.

 

This jewel of wisdom comes from American theologian Reinhold Niebuhr.

Investors would be well to memorize this prayer and apply it to their strategies, whether it be in your selection of your investment professional or in one’s own selections in the portfolio.

In other words: “If it aint working, try something else and if it aint broke, don’t fix it”

This advice also holds true in life in general.

Do your actions always result in the same outcome whether immediately or eventually?

Do you find yourself feeling the same feeling throughout life and if it is a negative or unfulfilled feeling, have you taken the time to really analyze what those decisions are that you are making that are causing the undesired outcome?

Few people really analyze a reoccurring negative outcome. They just keep doing the same thing, often because it “felt right at the time”.  We called this flying by the seat of your pants in my father’s day but it is still obviously applicable today.

Consider this: Taking heroin might feel good at the time but in the long run, is it the right thing to do?

In the longer run, decisions, whether it be in investing, or in life in general, will let you know whether they were right decisions eventually. Pride, ignorance or just a failure to analyze in retrospect those decisions will cause you to repeat them.

In conclusion, if the results, in whatever area they may be, continually disappoint and disillusion you, it’s time to step back and review your actions. In investing it means analyzing what we did wrong, what information did we miss and realizing what events we thought we could control but could not. In life, it means stopping, looking back and doing the same observation.

Did we have the courage to change the things we could change or did we take the easy path?  

Did we accept the conditions and realities we could not change or fail to recognize that fact?

Did we take the time gain the wisdom or introspective through whatever means available to us to acquire the wisdom to know the difference?

Gaining in years means gaining experience but it is not only that. Gaining in years means also learning, observing, acknowledging our successes and failures and moving forward, constantly altering ones path to reflect past events and outcomes.

Life is a never-ending journey.  If you missed a turn off somewhere, find it, retrace your steps and make the right decision next time around. And above all, don’t go in circles. That only insures that you will go nowhere and end up the same spot you started at. And remember, a journey is an event that is meant to put you in a different place than you are now. Hopefully a better one.

 

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The Mysterious FOMC and the Federal Reserve

 

Many American do not fully comprehend exactly what it is the Federal Reserve actually does (commonly referred to as the Fed).

From their own website, their function can be summed up as:

  • Conducting the nation's monetary policy
  • Supervising and regulating banks and other important financial institutions
  • Maintaining the stability of the financial system
  • Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions

The Fed has three key entities, the 12 Regional Banks (12 districts that cover the U.S. and are the operating arms of the Fed) the Federal Reserve Governors (the governing body of the Fed that reports to Congress) and the Federal Open Market Committee (FOMC) which is responsible for what is called Open Market Operations (OMO).

OMO refers to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. It all sounds a bit technical but think of it as a gas pedal for the economy, or at least one of the gas pedals possessed by the Fed. Press on the gas pedal and away you go, lift off the pedal and things slow down.

So how does OMO act like a throttle on an economy, allowing it to speed up (improve economic conditions) or slow down (cool off an overheating economy from inflation)?

It all has to do with how inflation works. Simply put, increase the amount of money in an economy, conditions generally improve and prices tend to rise. Withdraw (reduce) the amount of money, the economy slows and prices tend to fall. OMO plays to this mechanism.

In one instance, the Feds print up some money and buy debt that large U.S. banks are required to hold which are called “bank reserves”. This debt may include U.S. Treasuries (Government IOU’s) or debt from Fannie Mae or Freddie Mac, which is basically government backed mortgages. Large banks always hold vast amounts of both of these types of IOU’s and agree to let the Feds buy or sell these IOU’s at any time as a part of the OMO program.

When buying, the Feds give the banks money in exchange for their IOU’s. The Feds can also order the banks to do the reverse and buy IOU’s from the Fed.

This back and forth selling or buying between the banks and the Fed either funnels more cash into the banking `system` (when the Feds buy the debt) or take money out of the `system` (when the Feds order the bank to buy the IOU’s from the Fed). Incidentally the banks make a profit every time a transaction takes place because the Fed pays them a little bit extra when they are on the buy side of the equation.

A buy and a sell of the same IOU can happen overnight, meaning the Feds sell the IOU one day then buy it back the next. These are called repurchase agreements or “overnight repos” for short. The repurchase agreements can also be much longer in duration.

When the Feds buy IOU’s, more money goes into the banking `system` and the gas pedal is pressed down. When the Feds order the banks to buy IOU’s from the Fed, money is taken out of the `system` and the pedal is lifted.

By adding or subtracting money from the banking system, the Feds hope to control how much money is lent out to consumers and businesses thereby stimulating or slowing the economy.

Money is the fuel which drives the economy and by simply adding or subtracting vast amounts of it, the belief is it will act like an accelerator pedal and the economy will respond accordingly. Coupled with a variety of other tools at the Feds disposal, they hope to control the economy in the direction they want it to go and at the instant they want it to go there.

Given the history of market crashes, economic blow ups and the severity of such events since the Feds inception in 1913, I will leave it the reader to decide whether they actually accomplish this task.

 

All for now,

Marc